Pharmacyclics Incorporated (PCYC): Today's Featured Drugs Winner

Editor's Note: TheStreet ratings do not represent the views of TheStreet's staff or its contributors. Ratings are established by computer based on metrics for performance (which includes growth, stock performance, efficiency and valuation) and risk (volatility and solvency). Companies with poor cash flow or high debt levels tend to earn lower ratings in our model.

Pharmacyclics Incorporated ( PCYC) pushed the Drugs industry higher today making it today's featured drugs winner. The industry as a whole closed the day up 0.1%. By the end of trading, Pharmacyclics Incorporated rose $2.61 (4.2%) to $64.56 on light volume. Throughout the day, 741,771 shares of Pharmacyclics Incorporated exchanged hands as compared to its average daily volume of 1.3 million shares. The stock ranged in a price between $61.60-$64.69 after having opened the day at $62.05 as compared to the previous trading day's close of $61.95. Other companies within the Drugs industry that increased today were: Telik ( TELK), up 15%, Cleveland BioLabs ( CBLI), up 8.2%, Palatin Technologies ( PTN), up 7.8%, and China Biologic Products ( CBPO), up 7.6%.

Pharmacyclics, Inc. operates as a clinical-stage biopharmaceutical company focusing on discovering, developing, and commercializing small-molecule drugs for the treatment of cancer and immune mediated diseases. Pharmacyclics Incorporated has a market cap of $3.89 billion and is part of the health care sector. The company has a P/E ratio of 277.5, below the average drugs industry P/E ratio of 281.9 and above the S&P 500 P/E ratio of 17.7. Shares are up 318% year to date as of the close of trading on Tuesday. Currently there are six analysts that rate Pharmacyclics Incorporated a buy, no analysts rate it a sell, and three rate it a hold.

TheStreet Ratings rates Pharmacyclics Incorporated as a hold. The company's strengths can be seen in multiple areas, such as its largely solid financial position with reasonable debt levels by most measures, solid stock price performance and notable return on equity. However, as a counter to these strengths, we also find weaknesses including unimpressive growth in net income, premium valuation and weak operating cash flow.

For investors not wanting singular stock exposure, ETFs may be of interest. Investors who are bullish on the drugs industry could consider SPDR S&P Pharmaceuticals ETF ( XPH) while those bearish on the drugs industry could consider ProShares UltraShort Nasdaq Biotech ( BIS).
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